@TechReport{iza:izadps:dp4483, author={Belke, Ansgar H. and Bordon, Ingo and Melnykovska, Inna and Schweickert, Rainer}, title={Prospective NATO or EU Membership and Institutional Change in Transition Countries}, year={2009}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={4483}, url={https://www.iza.org/publications/dp4483}, abstract={This paper quantifies the impact of incentives related to potential membership on institutional change as measured by the World Bank Governance Indicators (WBGI). Based on a panel of 25 transition countries for the period from 1996 to 2008 we show that pre-accession incentives provided by EU and NATO clearly matter for institutional development. In addition, path-dependency determined by cultural norms may be overcome by economic liberalization while foreign aid seems to hamper institutional development.}, keywords={institutional change;transition economies;NATO;EU;governance}, }